The smartest entrepreneurs are constantly looking
for ways to reduce the risk of their investments. Through the business plan, the topic
of today's blog, it is possible to carefully plan and visualize a venture,
significantly increasing its chances of success.
What is a
business plan?
The business plan is a document that contains
everything about the business you want to start. Its objective is to reduce
risks and uncertainties, as well as analyze the feasibility of the enterprise.
By carrying out this structured planning, it is
possible to obtain more information about the field, products and services of
your business idea. That way, you will have more basis to answer the question:
“is it worth going with this idea or not?”
Keep in mind that uncertainties will always exist.
Having a 100% guarantee of success is not achievable. However, the better
prepared you are at the time of starting your venture, the greater your chances
of achieving the desired results.
Step-by-step
process for creating a business plan
It is presented in the first section of the plan;
however, it must be the last thing to be written. The executive summary is a
summary of the most relevant points contained in the business plan, and it is
necessary, from it, to obtain an overview of what the enterprise is and its
viability. It must include: business concept, financial characteristics and
current commercial position.
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other information: Garage
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Technical
aspects
This part of the business plan should cover:
presentation of the enterprise, logo, layout, human resources, organizational
structure, technical training of the team, mission, vision, values, objectives,
detailed description of products and services and a detailed description of the
production process.
The technical aspects are the essence of the enterprise.
From there, it should be possible to identify the type of activity that the
business will carry out, how it will perform it, its value proposition and
where it wants to go.
Market
analysis
Here are covered: consumer market analysis,
supplier market analysis, competitor market, strategic planning, SWOT analysis,
critical success factors, marketing and market research application
results.
Knowing the weaknesses and strengths of the
business, as well as the market where it will be inserted, is essential to
reduce risks . The more information that can be obtained, the more reliable
will be the decision of the project to be classified as viable or not.
Financial
analysis
Here you should do: the estimated initial
investment, depreciation of furniture and equipment, cost composition, human
resources, production costs, sales price, sales projection, projection of the
income statement and cash flow and, to finish, analysis feasibility of the
enterprise.
Financial analysis is
extremely crucial. In it will be made a projection of the expenses and also the
inflows of money , making it possible to analyze if the business is viable from
the financial point of view. Another important point here is the return on
investment projection, as it will tell you how long your business will be able
to recover the amount invested to start it.
Do you want to open your own business but would
like to get more technical knowledge before starting it? You are not wrong to
think so! The more you study and understand about administration and business,
the better your chances of starting a competitive venture, capable of
generating the desired returns.
Posted by: John Labunski
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